|
South Central Iowa | Waiting RiceFarmer! I don't buy puts that are already in the money. If we are able to pass through the $4.20's, which I and many people feel is not some impossible task by any means, I will purchase the puts on APH.
As I mentioned above, we have reached $4.50 in Dec Corn every year for 10 years except for last years $4.49.
User Rab1964 has also mentioned that we have broken $4.20 every year and that is where I actually get $4.20 as a target. Last year I did 1/6th of production at $4.30 and sold $5.10 calls. They paid off handsomely, I got rid of them around $3.30, but didn't roll them down. My only regret was not setting the whole floor. With the fundamentals this year, I plan on placing an entire floor and if it goes up, I can still do some physical if it's attractive and I won't complain if it's higher. We are either going to have a production disruption of some sort and hold the $4's or move up to the $5's for a peak or we are going to drop hard and visit the cellar again in the low $3's or possibly high $2's. | |
|
Dad's Old Bull
